University of Houston System hired Somerset Capital Management and Northern Trust Asset Management to run a total of $35 million in emerging markets equity for its $592 million endowment fund, said Raymond Bartlett, treasurer of the system, in an e-mail.
Somerset and Northern Trust will run $20 million and $15 million, respectively.
Mr. Bartlett said funding will come from Aberdeen Asset Management's termination and U.S. equities.
Aberdeen, which managed $26.3 million for the endowment in emerging markets equity was terminated in May because of concerns that the firm had “grown too large to be nimble in its strategy,” Mr. Bartlett wrote.
Separately, the endowment invested $10 million in SRS Partners, a long/short equity hedge fund managed by SRS Investment Management. SRS replaces Scout Capital, which returned capital to investors earlier this year.